1. A number of activities that are a part of a company\'s quality control system
ID: 2396606 • Letter: 1
Question
1. A number of activities that are a part of a company's quality control system are listed below. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost Activities Cost a. Product testing b. Product recalls c. Rework labor and overhead d. Quality circles. e. Downtime caused by defects t Cost of field servicing g. Inspection of goods h. Quality engineering. Stabesical process control k. |Net cost of scrap. L Depreciation of lest equipment m. Returnms and allowances arising from poor quailty n. Disposal of defective products o Technical support to suppliers p. Syslerms development Warranty replacements. r. Field testing at custorner site s. Product designExplanation / Answer
Product testing===Appraisal cost
Product recalls===External failure cost
Rework labor and overhead=Internal failure cost
Quality circles===Prevention cost
Downtime caused by defects===Internal failure cost
Cost of field servicing===Prevention cost
Inspection of goods===Appraisal cost
Quality engineering===Prevention cost
Warranty repairs===External failure cost
Statistical process control===Prevention cost
Net cost of scrap===Internal failure cost
Depreciation of test equipment===Prevention cost
Return and allowances arising from poor quality===External failure cost
Disposal of defective products===Internal failure cost
Technical support to suppliers===Prevention cost
Systems development===Prevention cost
Warranty replacements===External failure cost
Field testing at customer site===Prevention cost
Product design===Appraisal cost
2a) Appraisal Costs and Prevention Costs.
Explanation :- Appraisal costs are cost incurred in inspecting the quality of products before they reach the end user.
Prevention costs are costs incurred to reduce the number of defective outputs.
2b) External failure costs and Internal failure costs
Explanation :- Internal failure costs are costs incurred in inspecting and separating defective products within the facility.
External failure costs are those costs which are to be occured after the customer raises the request for the replace/restore of products
Product testing===Appraisal cost
Product recalls===External failure cost
Rework labor and overhead=Internal failure cost
Quality circles===Prevention cost
Downtime caused by defects===Internal failure cost
Cost of field servicing===Prevention cost
Inspection of goods===Appraisal cost
Quality engineering===Prevention cost
Warranty repairs===External failure cost
Statistical process control===Prevention cost
Net cost of scrap===Internal failure cost
Depreciation of test equipment===Prevention cost
Return and allowances arising from poor quality===External failure cost
Disposal of defective products===Internal failure cost
Technical support to suppliers===Prevention cost
Systems development===Prevention cost
Warranty replacements===External failure cost
Field testing at customer site===Prevention cost
Product design===Appraisal cost
2a) Appraisal Costs and Prevention Costs.
Explanation :- Appraisal costs are cost incurred in inspecting the quality of products before they reach the end user.
Prevention costs are costs incurred to reduce the number of defective outputs.
2b) External failure costs and Internal failure costs
Explanation :- Internal failure costs are costs incurred in inspecting and separating defective products within the facility.
External failure costs are those costs which are to be occured after the customer raises the request for the replace/restore of products
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